MPs have questioned why taxpayers should continue pumping R21.9 million a year into Boxing South Africa (BSA) when almost R4.7 million is swallowed by the salaries of its three top executives.
ANC MP Matsholo Mmolotsane told Parliament on Tuesday that Boxing SA’s government funding had effectively become a means of keeping its officials paid, rather than growing boxing.
“We are paying the CEO almost R2 million per annum. We are paying the COO R1.5 million per annum. It means whatever we are giving to Boxing South Africa is just to secure the salaries of the officials,” Mmolotsane said.
She told the portfolio committee on sport, arts and culture that the R20-million-plus annual allocation should not continue.
“Other federations get at least about R3 million. This one gets R20 million. I think it’s time that the department must go back and do their homework. That was the last time that we give BSA R20 million,” she said.
The figures provided to MPs showed that Boxing SA’s CEO, Tsholofelo Lejaka, earns a basic salary of R1.9 million a year, rising to almost R2 million with benefits.
The Chief Operating Officer earns R1.5 million including benefits, while chief financial officer Bertram Moses earns R1.177 million.
Together, the three executives cost the public purse about R4.7 million a year.
Moses confirmed that their salaries had increased since their appointments.
Asked whether the CEO’s salary had increased between his appointment and now, he said: “Yes, there has been.”
He did not disclose the size of the increase.
But the regulator’s financial dependence on government became even more stark when Moses admitted that Boxing SA could not survive without state funding.
“The short and sweet answer, and honest answer, is no,” he said, when ANC MP Gaolatlhe Kgabo asked whether the regulator could exist without state funding.
“Not at the immediate. Simply because the mandate far outweighs the funds that we are receiving,” he said.
The department’s R21.9 million grant accounts for most of Boxing SA’s revenue.
At the same time, the regulator has R11.6 million in liabilities against assets of just R9.9 million.
Mmolotsane questioned what taxpayers were getting in return.
“Honestly, they did not make any profit, because we gave them R20 million. And the liabilities of BSA are more than their assets,” she said.
She then put the Boxing SA leadership on the spot, asking its board chairperson and CEO to each provide two reasons why the state should continue funding the regulator.
“Are they aware that they are a burden to the department?” she asked.
Board chairperson Ayanda Khumalo defended Boxing SA, saying the regulator had inherited a disastrous financial position.
“BSA plays a very vital role in the sport of boxing. When we came in in 2024, it was really in a very dire state. The deficit was extreme. It’s not perfect, and we acknowledge that. But we are working hard to get it to a better place,” she said.
Khumalo blamed the difficulty in attracting private investment on Boxing SA’s status as a public entity.
“The private sector is very loath to fund a public entity. We’ve had two years to try and get us to where we are now. We are in a much better space. And I think with a few more years, we can get to a much better position,” Khumalo said.
Mmolotsane was unmoved.
“The chairperson did not convince us. Is it fair that other federations who are constantly performing far better than BSA continue to get less support? You have CSA, they did not get anything. You have SARU, they did not get anything. You have gymnastics, they complain day and night about funding,” she said.
MK Party MP Gift Motaung then turned the scrutiny directly onto the executives’ pay packets.
“Who came up with the salaries? Are you guys willing to cut down your salaries for a good cause, to invest that money into boxing, the tournaments and everything?” he asked.
Khumalo said the salaries had been benchmarked against public-sector remuneration.
“We look at the level of entity we are, and what the scales from the public administration department say,” she said.
She did not say whether any of the executives would voluntarily take a pay cut.
Committee chairperson Joe McGluwa also took aim at the remuneration of public entity executives.
“Most of you officials in these public entities, you are even contesting the President in terms of salary,” he said.
Despite the mounting questions over Boxing SA’s finances and dependence on the state, Deputy Sport Minister Peace Mabe stopped short of recommending an end to government funding.
Asked whether the department should continue funding the regulator, Mabe said: “That’s a very difficult question. I must be honest with you. I think there’s still room for growth and development, if they are given a chance and they are held accountable, they are monitored and supported. They are young. They look committed. They just need guidance and proper monitoring.”
